Canada ready to buy more US products to ease threat of Trump's tariffs
Donald Trump (photo: Getty Images)
Canada is ready to purchase more goods from the US, including its next fleet of submarines. The country is considering this to address the concerns of the elected US president, Donald Trump, regarding the trade deficit between the two nations, states Canada's ambassador to the US, Kirsten Hillman.
"We are happy to source what we can from the US. And we have some big military procurements coming up for example, replacing our entire submarine fleet. Maybe those are some purchases that can happen from the US," she said.
Hillman noted that Canada purchases more from the US than any other country. Specifically, 70% of Canada's military purchases come from America. This includes a plan to purchase 88 F-35 fighter jets.
According to her, trade with Canada supports over 8 million jobs in the US, and the country is the number one customer for 36 American states. She also mentioned that Canada supplies many raw materials that go into US production.
The ambassador stated that last year, the trade deficit between the US and Canada amounted to $75 billion, adding that a third of what Canada sells to America is energy exports.
In an interview with AP, Hillman warned that prices for Americans would almost immediately rise if Trump implements his plan to impose a 25% tariff on all Canadian products.
During the conversation, she also rejected claims by the newly elected US president that Canada could become the 51st state, stating that this is just how Donald Trump negotiates.
"He has a negotiating style which involves positioning himself in the best way he can for discussions. I think that is what this is," Hillman said.
Recently, Canadian Prime Minister Justin Trudeau, who is stepping down, stated that Trump's tariff policy could sharply increase costs for American businesses.
Later, Bloomberg learned more about the Canadian response. For details on the planned measures, read the article by RBC-Ukraine.
